P2P file sharing is a data exchange infrastructure that allows the exchange of information between two or more computers without a central network layout structure. This means that every machine connected to the P2P network contains client and server capability to both request information from and serve information to other machines of similar configuration. Such networks are organized loosely without any centralized management authority. This allows for any user to attach to the network and share files. It also allows for any user to request shared files from other users having similar characteristics.
The pace of technological innovation with regard to P2P networking technology and the Internet is outpacing the capability of present intellectual property laws to regulate it. The days of easy regulation and the use of litigation as a tool for controlling intellectual property are numbered. Today, many copyrighted works such as music can be converted to a digital format and distributed over the Internet. It is very difficult for intellectual property owners to pursue even a small fraction of the existing potential copyright infringement cases. Intellectual Property owners and management companies have to adapt or will find themselves in an endless conflict with emerging technologies. There is a need for direct targeted media advertising utilizing the systems and methodologies.
Currently, advertising is not effective in many modern P2P networks, and it is often prohibited or severely restricted. On privately developed P2P networks, advertising is often limited to companies that pay the owner of the network for banner-based ads. On Open Source developed P2P networks, advertising is not permitted at all. Furthermore, when advertising does appear on the Open Source developed P2P networks, the beneficiary of the advertisement is often attacked by hackers (i.e. those who gain unauthorized access to a computer network). Many hackers try to protect the network against a perceived threat of untargeted and unsolicited advertising called “spam” which takes neither the desire of the P2P user to be free from harassment nor the needs of the P2P user into account. This type of advertising annoys P2P users because it results in slower connections and wasted time. It is counterproductive for advertisers because they lose money on each advertisement and possibly receive negative “publicity” or exposure.
Currently, P2P networks and companies are seen by many as means for users to get free content and to benefit from copyright infringement. Media companies and content providers gain nothing and suffer losses as users of P2P networks obtain for free what consumers would otherwise have to buy.